Eve (US:EVEX)2025-05-12 13:02Financial Data and Key Metrics Changes - The company reported a net loss of $49 million in Q1 2025, with R&D expenses at $44 million and SG&A expenses at $8 million [22][21] - Cash position at the end of Q1 2025 was $288 million, down $15 million from the end of 2024, but total liquidity was $411 million, sufficient to sustain operations through 2026 [22][23] Business Line Data and Key Metrics Changes - The company invested $45 million in program development during the first quarter, focusing on eVTOL, service and support solutions, and urban air traffic management software [21] - The total preorder backlog remains at approximately 2,800 aircraft, valued at around $14 billion, with contracts for aftermarket services potentially generating $1.6 billion in revenue [19][20] Market Data and Key Metrics Changes - The order book includes non-binding letters of intent from 28 customers across nine countries, indicating a diverse market interest [19] - The company is actively engaging with customers to develop an ecosystem for urban air mobility, focusing on reliability and operational costs [20][39] Company Strategy and Development Direction - The company is on track to begin flying prototypes in 2025, with a focus on completing the certification campaign for the eVTOL aircraft [24][19] - The assembly line for the conforming prototypes is prepared at Embraer's facility, emphasizing collaboration with suppliers and engineering teams [18][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting ambitious targets for prototype assembly and certification, with ongoing engagement with suppliers and customers [24][19] - The company is focused on ensuring seamless operations and support for eVTOL operators, which is critical for the success of the aircraft [54][53] Other Important Information - The company is developing a strong network of partners in infrastructure and energy to address challenges in urban air mobility [20] - The IronBird simulator is being used to integrate and troubleshoot various systems, which is crucial for reducing costs and expediting the certification process [15][14] Q&A Session Summary Question: R&D spending expectations - Management indicated that R&D spending is expected to remain around $44 million per quarter, with no significant acceleration anticipated [26] Question: Certification aircraft build timeline - The conforming prototype is on schedule, with the assembly site ready to receive tooling, and parts are being prepared for assembly [29][48] Question: Services contract backlog details - The $1.6 billion services contract backlog includes battery replacements and repairs, but not upgrades [34] Question: Free cash flow and liquidity - Cash consumption is expected to be closer to the lower end of the $200 million to $250 million guidance, with sufficient liquidity for operations through 2026 [42][23] Question: Prototypes for certification campaign - The company plans to start assembling parts for the five prototypes towards the end of the year, with most cash still directed towards R&D [50][48] Question: Software development for services - The software side is actively being developed to ensure it meets operator needs and is user-friendly [60] Question: Future financing options - The company has multiple funding options available, including grants and loans, ensuring sufficient funding for upcoming years [62][63]